Best Practices in Gift Processing

Transcription

1 Best Practices in Gift Processing You don t t have to learn the hard way Presented by: Cathy Spickard

2 Let me start with a story..

3 Analysis of Current Operations Gift Flow Processes/Procedures Audit control Organizational structure & staffing Metrics Development data/financial systems

4 Start by asking questions.. Gift Flow What is the flow of a gift from intake to distribution, receipting and reporting

5 More questions.. Current Processes Do we know why we do what we do TODAY When is the last time operating processes were reviewed and updated Are we consistent in how we process gifts Are processes and procedures documented or does the knowledge reside with people Procedures Outright gifts Pledges Matching Gifts Gifts-in in-kind

6 Unit/Department Receives gift Gift? Gift transactions <10K are recorded by Gift Processors Gift transactions >10K are recorded by Unit Liasons Holding account reconciled and funds transferred to Units by Operations Manager Gift sent by donor Lock Box After gifts are recorded Receipts generated and sent to donor Mail opened Checks imaged & cashed Gift Administration New Pledge? New pledges >5K sent with a payment recorded by Unit Liason Credit cards charged $ deposited into holding account New pledges <5K sent with a payment recorded by Gift Processor Reports generated and sent to Units If complaint: Sent to Unit for handling Correspondence? If biographical change: Updated by Gift Processor If gift question: Handled by Unit Liason

7 Gifts University of Michigan Procedures Goals & Controls Know where a gift is at all times Gift should only be touched once and twice at most before processed Separation of duties between gift processing and reconciling Management review and sign-off of reconciliation All gift adjustments must flow through gift processing office (ensure Development in agreement with General Ledger) Build/maintain strong relationship with Finance Office

8 Pledges University of Michigan Procedures Goals & Controls All pledges are reviewed by Gift Administration. A pledge will only be recorded if it meets the following criteria: Specific pledge dollar amount Set payment schedule Specific designation or purpose Donor signature Unconditional agreement Past due pledges are reviewed quarterly Support required for pledges $5,000 and above that are over 2 years past due Major pledges with one payment past due require support Telefund pledges over one year past due are written-off

9 Matching Gifts University of Michigan Procedures Goals & Controls Know your matching gift companies What they will and will not match Time frame for claims Is the program still operating Keep good records and continually review for outstanding claims Send letters to donors advising of possible match Outside Vendor (HEP) is an option for increasing MG dollars Utilize time saving tools for dealing with all the paperwork Database (file maker pro for printing envelopes, etc) Labels and other pre-printed printed items

10 University of Michigan Procedures Goals & Controls Gifts-in in-kind Good reference is IRS Pub. 526 Ensure services are not counted as GIK Independent appraisal required for gifts over $5,000 Timely processing of paperwork

11 Audit Issues to Consider Cash Management Are controls sufficient to deter loss of gift funds (daily deposits, restrictively endorsed checks) Credit cards Is credit card information securely stored Gift reconciliation Is each gift accounted for Is your holding account cleared timely Are Development records in-sync with the Finance side

12 Audit Issues to Consider Pledges Pledges on system meet GASB/FASB requirements Regularly perform review and write-off process Analysis of adequacy of reserve funds for doubtful pledges Document Retention Are standard retention policies followed Polices and Procedures Are policies and procedures documented Receipts/Acknowledgement Are gifts acknowledged/receipted as required by IRS rules

13

14

15 Organizational Structure/Staffing Current Operations Does your current organizational structure support your goals and objectives Are you staffed appropriately to meet your processing needs Do you have the right people in the right jobs Are your staff properly trained

16 Office of Gift Administration Office of University Development Cathy Spickard Director Maria Weatherwax Adminstrative Assistant Jennifer Barnett Operations Manager Maria Zampierollo Gift Processing Manager Tamara Beach Gifts Specialist Emily Vonderporten Gift Processor Justin Schwinghamer Gift Processor Maribeth Patton Securities Manager Stephanie Neeb Unit Liason Beth Langenderfer Gift Processor Louis Perdue Gift/Securities Processor Linda Kline Unit Liason Mary Mickels Junior Unit Liason

17 Performance Expectations & Measuring Outcomes Staff must know what is expected of them and how their performance is evaluated They need know that they are accountable for their work Staff must be properly trained Communication is key - provide regular feedback to staff regarding performance Occasionally, a staff member just won t t succeed in the position

18 Metrics Metrics are essential tools for knowing where you re at and getting you where you want to be Talking with peer institutions can assist in setting your goals and objectives Examples of what you might measure: Number of gifts processed per day/week/month per gift processor Number of donor calls taken per day Number of gift adjustments made Reason for gift adjustments who made the error and why Turn-around time for gifts processed

19 Metrics What we looked at Productivity Know how long it takes to process one gift Know how many gifts are processed per day collectively and individually What other responsibilities do staff have that may decrease productivity rate Ensure daily, weekly monthly deadlines are met Procedures reviewed periodically to ensure operating effectiveness, what about new methods/tools

20 Metrics What we looked at Accuracy Define your goal accuracy rate The Standard What is your current accuracy rate for gift processing What is the balance point between accuracy and productivity How does each staff member perform in relation to the standard

21 University of Michigan Performance Standards Productivity Prior to lockbox conversation expectation of 200 gifts per person, per day. After conversion, due to increased OCR usage and decreased manual batches, gifts processed increased to 400 per person, per day Each staff member is assigned other daily duties in addition to processing gifts Processing Time All gifts will be processed within 24hours except during December If reporting or receipting deadline work priorities shift in order to meet goals Staff training All staff are cross-trained and each person has an back-up to ensure all tasks are completed when someone is out

22 University of Michigan Performance Standards Accuracy Standard of 98% accuracy rate Not all errors are equal Wrong donor Wrong account Solicitation code error Pledge payment missed Matching gift form Some errors generated by receiving unit Track type of error Number per unit Looks for trends (training opportunity)

23 Data System Database System/Technology Assuming you need to work with your current system are you utilizing its capabilities effectively Are there any quick wins you can make from small changes in your system Are their products available to improve operating efficiencies

24 You may consider Lockboxes OCR/Barcodes Online Giving Website E-solicitations Outside Vendors Standard uploads to system

25 In Conclusion

26 The Guiding Principles Define the the Goals, Objectives and Vision for your organization Plan, Take Action and Measure Outcomes Review and Revise!!

27 Q&A/Discussion Time